Banking Code changes
The UK Banking Code will change from March 2008, with a focus on helping customers to deal with financial problems.
Kevin Mountford, head of savings and current accounts at price comparison site moneysupermarket.com, said: “This is all excellent news for consumers, many of whom have been at the mercy of big institutions for too long. The increased focus on helping consumers overcome financial difficulties is absolutely right given the escalating debt crisis we have seen over the last couple of years, and recognises the ease of obtaining credit – banks must play their part in ensuring these credit lines are not so wide open in future. There needs to be a step-change in attitude from ‘buy now pay later’ to ‘save for it’ and we believe these measures will help move this along.
“The Code will also prohibit current account closures where a customer has made a complaint and again, this is something we applaud – how can consumers have any rights if they are unable to air their grievances?”